HONG KONG Asian stocks are set for a cautious start on Wednesday as investors move to the sidelines before a potentially tense meeting between Donald Trump and Chinese President Xi Jinping later this week.Energy counters bucked the broad trend after a bounce in oil prices on Tuesday thanks to an unplanned production outage in the North Sea and growing concerns about diminishing U.S. oil stocks. [O/R]U.S. crude CLc1 rose to $51.30 per barrel on Tuesday, its highest since March. 8 before settling at $51.14 per barrel in opening trades on Wednesday.
That pushed energy and related shares up on Wall Street and helped reverse losses on the broader market. Main U.S. indexes closed between 0.1 to 0.2 percent higher. .DJI .SPX Wall Street's meager gains are unlikely to provide much support to Asian stocks as investors remain wary of taking fresh positions before a landmark summit for Presidents Trump and Xi on Thursday and Friday.
It will be their first face-to-face meeting since Trump took office on Jan. 20, with trade and security issues set to figure prominently.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was flat with early Asian markets such as Australia and South Korea .KS11 slightly higher.
Major currencies traded in a narrow range ahead of the release of minutes from the Fed's March meeting when it raised interest rates, and before the big U.S. jobs report on Friday. The dollar edged 0.1 percent higher to 110.82 yen JPY=D4 against the Japanese currency. The dollar index .DXY, which tracks the greenback against a basket of six trade-weighted peers, was broadly flat at 100.49. The euro EUR=EBS was a shade stronger at $1.06810.Gold XAU= was trading at $1,255.21 per ounce, just below a one-week high hit in the previous session. (Reporting by Saikat Chatterjee; Editing by Eric Meijer)
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Published Date: Apr 05, 2017 06:45 am | Updated Date: Apr 05, 2017 06:45 am